(Sharecast News) - Texas-focussed oil and gas company Nostra Terra announced the start of drilling operations on its new, wholly-owned Grant East Lease in the Permian Basin on Thursday.
The AIM-traded firm said it had secured 160 acres of leases, and completed a development plan for up to eight new wells.
It said the primary target was the Permian Age Clear Fork formation, with three wells being permitted and the first well to be spud in the coming days.
"We have aggressive growth plans for the company this year and I am happy to report that we are delivering on them with the acquisition of the Grant East Lease in West Texas," said chief executive officer Matt Lofgran.
"Immediately upon the successful acquisition of the lease we began permitting several wells, construction of a location and contracted a drilling rig.
"We're excited to get started so quickly at Grant East, which we believe has the potential to be a bigger contributor to the company's net production than Pine Mills where we had our recent success with the Fouke 2."
Lofgran said the company had taken "great strides" towards increasing both its production and cash flow in recent years, which now provided it with the funds to invest in growth.
"We're entering a very busy period for the company and I look forward to updating everyone in the very near term on the production results from the Fouke 2 well along with the progress on our growth plans as they continue to unfold in subsequent periods."
At 1347 BST, shares in the Nostra Terra Oil and Gas Company were up 7.96% at 0.61p.
Nostra Terra (NTOG)